Prior to the tenant’s occupancy in to a rented property, it is very vital to have a tenancy agreement signed by the concerned parties, the tenant and the owner. It is a decision, which is agreed upon by the parties enabling the tenant to reside at a rented property and making it convenient for the owner of the property to attain his regular payments by the tenant.
The Tenancy Agreement is simply for the facility of both the groups, so that no clashes or issues arise after the property is rented. It can be both in written or oral form. However, the oral agreement can cause problems afterwards, as there is no evidence of it. Hence, the written contract should always be preferred to have a written record and proof of the whole agreement. The written agreement makes it easy for you to gain your rights by approaching law, if such a requirement is arisen.
The contract for the tenancy should follow certain guidelines. It should be designed as per the rules imposed in a country. It will not be any good if it does not focus on all the legal formalities. Both parties are eligible for certain benefits, if they design the agreement as per the law of the country and are accountable as well in case of violation.
Each point of the tenancy contract should be clearly mentioned separately in points to avoid any misunderstanding in the future, which in the end will be signed by both parties, proving their consent. A third person, who acts as a guarantor should be present at the time of the agreement, since he will be responsible for making sure that every month’s rent is being paid as per the defined time line and due dates. The starting and ending date of the tenancy should be clearly mentioned in the contract as well.
The amount of rent that is to be paid by the tenants each month should be stated in numbers as well as in words for the purpose of clarity. The date on which the tenant will have to pay the rent each month should also be included in the treaty. Besides, there should be an affirmation of the deposit held by the landlord. It also should be written in both words and numbers.
Even the system of the payments should be clearly mentioned in the tenancy contract for future reference, which will state the way the rent will be paid to the owner; either directly, by the state agent, by mail, cash in hand or by signing a cheque. This will be a written proof holding all the details of the payments.
Moreover, some other issues can be settled in the agreement, as the tenant will have to pay all the utility bills, reconnection fees (in case of disconnection of any service), license fee of television, etc. Besides, points like the tenants should keep the house or property in good condition, no changes should be made in property without the permission of landlord, property rented for the residential use should not be used for commercial or any other purposes, etc can be included in the agreement. Similarly, the responsibilities of the landlords like the repair of property in case of damages (not done by tenant), tax payment, insurance of property from hazards, etc are also covered in the Tenancy Agreement.
The tenancy contract proves to be a record of all mutual agreements decided by both parties, and hence, they are bound to abide by it in order to avoid any disputes.